Strategies for Enhancing Gen Z Employee Retention in the BPO Industry: A Focus on Organizational Economic Socialization

The study aims to investigate the factors influencing Gen Z ER (Employee Retention) by examining the role of organisational economic socialisation factors (i.e., training, co-worker support, prospects) and psychological contracts. In contrast to previous generations, socialising and retaining Generation Z (Gen Z) employees is difficult to engage and retain in the business process outsourcing (BPO) industry. Data was collected via an online questionnaire using cluster probability sampling techniques from four BPO organisations targeting only Gen Z employees working in the BPO industry, and 137 responses were recorded. We tested the hypothesis using the confirmatory factor analysis (CFA), partial least square structural equation model (PLS-SEM) and mediation analysis. The study's results imply that the psychological contract illustrates a mediating factor between the construct of organisational socialisation and ER, particularly concerning Gen Z. This study recommends that BPO companies focus on training programs, development of proper career progression, improving psychological contracts and enhancing the presence of co-workers' support to retain Gen Z employees.